The following information is presented for Bramble Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year Net Income per Books Error in Ending Inventory 2017 $ 192,000 Overstated $ 26,000 2018 89,000 Overstated 34,500 2019 106,000 No error - 2020 216,000 Understated 6,600 2021 97,000 Understated 19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory errors.
The following information is presented for Bramble Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year Net Income per Books Error in Ending Inventory 2017 $ 192,000 Overstated $ 26,000 2018 89,000 Overstated 34,500 2019 106,000 No error - 2020 216,000 Understated 6,600 2021 97,000 Understated 19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory errors.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 28CE: Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020....
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Question
The following information is presented for Bramble Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory.
|
Year
|
Net Income
per Books |
Error in Ending
Inventory |
||||
|---|---|---|---|---|---|---|
| 2017 | $ 192,000 | Overstated | $ 26,000 | |||
| 2018 | 89,000 | Overstated | 34,500 | |||
| 2019 | 106,000 | No error | - | |||
| 2020 | 216,000 | Understated | 6,600 | |||
| 2021 | 97,000 | Understated | 19,500 |
Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory errors.
Transcribed Image Text:Errors in Inventories
Understatement
Overstatement
Understatement
Corrected Net
Jan. 1
Dec. 31
Dec. 31
Income
$
$
$
%24
%24
%24
Transcribed Image Text:Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory
errors.
Errors in Inventories
Net Income
Overstatement
Understatement
Overstatement
Year
Per Books
Jan. 1
Jan. 1
Dec. 31
2017
$ 192,000
$
$
2$
2018
89,000
2019
106,000
2020
216,000
2021
97,000
%24
%24
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